Background:
The appellants, John Karras and EasyGrades LLC, were defendants in a case brought by Wizedemy Inc. and Wizedemy Corp., the respondents. The dispute centered on an interlocutory injunction obtained by Wizedemy to prevent Karras and his company from competing with them at Concordia University and the University of British Columbia (UBC) for 12 months. This injunction was based on a non-competition clause in their agreement. Wizedemy alleged that Karras breached this clause by offering competing services and using confidential information.

Legal Arguments:
Karras argued that the non-competition clause was ambiguous, unreasonable, and therefore unenforceable. They also contended that the injunction granted by the lower court was broader than what the clause allowed. On the other hand, Wizedemy maintained that the clause was clear, reasonable, and essential for protecting their proprietary interests, including their student relationships and developed course materials.

Issues:
The primary issue was whether the non-competition clause was reasonable and enforceable, especially given the alleged ambiguity. Additionally, the court considered whether Wizedemy would suffer irreparable harm without the injunction and whether the balance of convenience favored granting the injunction.

Court’s Decision:
The Court of Appeal allowed the appeal in part, agreeing that the injunction was valid but finding it broader than necessary. The court modified the injunction to restrict Karras only from providing directly competitive services at Concordia and UBC.